Ottawa Wrote Off $4.5 Billion in COVID Benefit Repayments Last Year

The Office of the Auditor General of Canada says the federal government wrote off $4.5 billion in COVID-19 benefit overpayments and debts last fiscal year, a significant increase from the $26 million written off the previous year.

The Canadian Press says that the government has been trying to recover pandemic benefit payments from Canadians who were found to have received more money than they were entitled to or were ineligible for the assistance.

However, when repayment is no longer expected, the government writes off the debt and removes it from its financial records.

Auditor General Karen Hogan’s office also warned that a growing share of pandemic-era business loans is unlikely to be repaid.

Ottawa’s provision for potential losses on Canada Emergency Business Account (CEBA) loans rose to $5.6 billion last fiscal year, out of $7.2 billion in outstanding loans.